Government Meetings

Meeting Details:

1
MINUTES
TRANSYLVANIA COUNTY BOARD OF COMMISSIONERS AND BOARD OF
EDUCATION JOINT MEETING
April 3, 2007- Rogow Community Room, Transylvania County Library
The Transylvania County Board of Commissioners met in joint session with the Board of
Education on April 3, 2007 at 7:00 p.m. in the Rogow Community Room at the
Transylvania County Library.
Commissioners present: Lynn Bullock, Chairman Jason Chappell, David Guice, Daryle
Hogsed and Vice-Chairman Kelvin Phillips.
Board of Education members present: Bill Cathey, Chairman Teresa McCall, Jenni
Pogue, Vice-Chairman Mike Rogers and Chris Whitmire
Staff present: County Manager Artie Wilson, County Attorney Jeanne Hall, Finance
Director Gay Poor and Clerk to the Board Trisha McLeod
School Staff present: Norris Barger, Jenny Hunter and Dr. Sonna Lyda
Media: Transylvania Times- Carleigh Knight
There were approximately 7 people in the audience.
CALL TO ORDER
The meeting was called to order at 7:00 p.m.
WELCOME
Board of Education Chairman Teresa McCall and Board of County Commissioners
Chairman Jason Chappell welcomed everyone to the meeting.
PRAYER
Board of County Commissioners Vice-Chairman Kelvin Phillips offered the invocation.
PLEDGE OF ALLEGIANCE
Board of Education Vice-Chairman Mike Rogers led the Pledge of Allegiance.
OPENING REMARKS
Chairman Chappell and Chairman McCall thanked both Boards for continuing the
discussion of the School Board’s budget formulation.
4/03/2007
2
OLD BUSINESS
LOTTERY FUNDS
Chairman McCall stated that recently the County Manager, Artie Wilson, met with
Superintendent Lyda to request the Board of Education consider allowing the County the
use of the current lottery proceeds. She asked the County Manager to share the proposal
with the Board of Education.
The Manager said during the budget process last year, the County was directed by the
NCACC to handle lottery funds the same as ADM funds. The Lottery Funds were
included in the budget as revenue to use towards school capital. The County’s proposal
is for the Board of Education to allow the County to use the funds for projects as already
budgeted and identified by the Board of Education. Otherwise, the County would suffer
a budget deficit. In the future, lottery funds will not be budgeted and both Boards will
designate the funds for specific projects.
Chairman McCall said the Board of Education is willing to consider the County’s request
to use the lottery proceeds for FY 2006-07 with the following expectations:
• The education lottery proceeds will not affect the Board of Education’s FY 08
budget request.
• The capital outlay baseline will not be affected by this decision.
• The Board of Education would select projects for the use of the education lottery
proceeds beginning July 1, 2007 and beyond. In addition, the education lottery
funds will not be considered when developing future budgets.
• A written agreement between the two Boards should be formulated by the
chairmen.
Chairman Chappell stated that the Board of Commissioners has not yet discussed the
proposal and he called for commissioner comments. Commissioner Guice requested the
Board of Education’s list of expectations in writing. He added that the County followed
the direction of the NCACC on how to budget the lottery funds and the County can
provide that information to the Board of Education. In addition, the County can provide
a timeline of when Commissioners met to discuss and pass the budget. Commissioner
Guice said the budget message included a statement reference the lottery funds being
used as revenue for FY 2006-07 and the budget message was posted on the County
website. He added that the Commissioners need time to review the Board of Education’s
proposal and then make the best decision.
Chairman Chappell asked the Manager to forward the information, including email
correspondence, to Chairman McCall. He said the information shows the policy set forth
by the NCACC and explains how the lottery funds were budgeted.
Commissioner Phillips said he believes the NCACC was not clear on how to budget the
lottery funds. He said it is not wise to budget lottery funds because the rules are not
4/03/2007
3
clear. He agreed with Chairman McCall not to consider the lottery funds for future
projects.

Commissioner Guice said the County’s inclusion of lottery proceeds in its funding
sources for school capital projects was fully in accordance with the recommendations
provided by the NCACC and in compliance with the Lottery Act as it was passed, as it
stood in June 2006, as it still stands today, and as it will stand at least until July 1, 2007.
He said the County did not act inappropriately.
Commissioner Phillips clarified his previous statement. He said a memo dated July 6,
2006 read, “While the initial lottery legislation excluded non-supplant language, the
legislative intent was to increase educational funding overall, not to supplant existing
dollars.” Mr. Whitmire added that the FY 2006-07 budget was intended to include the
budgeted amount plus the lottery funds. However, the Board of Education is willing to
help alleviate the situation.
Chairman McCall said it has not been the Board of Education’s intent to withhold
information from the County or State and doesn’t believe anyone intentionally did
anything wrong. She is interested in seeing the criteria that led people to believe that it
was appropriate to budget educational lottery funds as County revenue. She said they are
willing to work with the County but they have some expectations as well, which she will
share with the County in writing. Chairman McCall said she believes their expectations
are reasonable and they will assist the County in any way, but as of July 1, 2007 the
lottery funds should no longer considered as County revenue nor should they be budgeted
by the County or determined by the County how to be appropriately spent. She is
concerned that both Boards have different information. She asked how quickly this issue
could be resolved and understands that no action will be taken at this meeting. She
requested both Chairs work together to develop a proposal to bring back to their
respective Boards.
Commissioner Guice said his concern is that the Commissioners have not discussed this
matter. He said he would prefer the Commissioners meet and give direction to the
Chairman. Commissioner Guice said that he fears there is a feeling that the County
intentionally supplanted funds. He stated that the 2007 approved capital budget for the
schools was $1,868,385.00. The Commissioners also met the challenge of providing an
additional $350,000 that was needed for stadium renovations at Brevard High School.
Mr. Rogers said although the budget was public information, the Board of Education was
not aware that the lottery proceeds were part of the revenue until January of this year
when the Board of Education was starting to discuss how to allot or appropriate those
funds. He hopes that in the future there will be better communication between the
Superintendent and County Manager. He said they are appreciative of the County
Commissioners for meeting their needs and for funding the additional $350,000 for the
stadium at Brevard High School. Mr. Rogers added that during their budget sessions,
they were not aware of the problems at Brevard High School. He said he is concerned
about the education lottery proceeds. He noted that if the $288,000 allotted for
4/03/2007
4
Transylvania County in lottery proceeds was deducted from their $1.86 million capital
budget, the capital budget is reduced to $1.58 million. He said it if had not been for those
funds, the schools would have been looking at a 6.67% cut in capital spending.
Chairman McCall stated that there should have been more extensive conversation prior to
assumptions being made by both Boards about educational lottery funds. She said now
both Boards have an opportunity to do what is right and come to agreement that is
acceptable to both Boards. She said the Board of Education needs to be transparent in
their budget development with the County and the County as well with the Board of
Education. Chairman Chappell concurred with Chairman McCall. He said both Boards
have an opportunity to do what is right. He added that the intent of the legislature was
not stated in the initial information the County received. He believes both Boards should
continue to communicate and the expectation should be to have transparent budgets.
Commissioner Bullock added that the County is responsible to the taxpayer as the School
System is responsible to the children. He is confident that both Boards will find
resolution and develop a plan to utilize the lottery funds. Commissioner Guice stated that
both Boards have always been able to work together and will continue to do so.
FY08 CURRENT EXPENSE BUDGET
Chairman McCall said there have been a few changes to the FY08 Current Expense
Budget request since both Boards last met. She summarized the changes. She added that
it includes no new positions.
• Teacher Supplements: She said it is the Board of Education’s desire to continue to
increase teacher supplements. She stated that Transylvania County’s supplement
is higher than Henderson County which shows a commitment by both Boards.
Over the next 5 years thru FY13, the Board of Education wants to strive to bring
teacher supplements to 10%. Their initial request was to bring the supplements
up to 9% but since the last meeting they have learned that other counties are
striving for higher supplements. Chairman McCall added that the upcoming
changes to the curriculum will make it difficult for schools to attract teachers in
specialty areas such as Foreign Language. She also pointed out that Transylvania
County does not receive Low Wealth or Small School funding, whereas counties
like Cherokee County receive over $1,725,000. She said Representative Walend
and Senator Snow are working on legislation to include Transylvania County in
Small School funding.
• Medical Reimbursement Plan: This figure has been adjusted since the last
meeting because they were compiled at $350 per employee and it should have
calculated at $300 per employee. Chairman McCall said the Medical
Reimbursement Plan is a way to retain and reward teachers and staff.
• Hazardous Chemical Removal: Chairman McCall said they have estimated the
cost at $5,000. She said they are following information received from
surrounding schools. She added that they expect to have a quote by the end of the
week.
4/03/2007
5
Mr. Whitmire stated that the new curriculum will make Transylvania County compete for
teachers with neighboring counties so the supplements are very important. He said the
Medical Reimbursement Plan is a way to show their staff that the Board of Education
cares about them and is trying to take care of them. He said for them to expect
outstanding results from their teachers, they have to make sure the teachers see their
appreciation. He hopes the Commissioners will see the value of these two items. He
added that Henderson County is working toward a goal of 10% for teacher supplements.
Chairman McCall added that they expect to have information on the Federal budgets by
April 15, 2007.
Commissioner Guice stated that the Commissioners have been supportive of teacher
supplements and has made a commitment to increase supplements through 2008. He said
we are going to have to remain competitive. He said he is not as optimistic about the
Medical Reimbursement Plan because of some of the other challenges the County faces
in the coming year, but it will be considered and discussed and given the attention and
time necessary to make a good decision.

Commissioner Guice noted that their budget request includes a 10.1% increase in
operating expenses. Chairman McCall responded saying they may not realize the
discretionary cuts because it is not in the Governor’s budget. As they get further
information they will share that with the Board of Commissioners. Commissioner Guice
said he knows the challenges they face and the Board of Education’s request is in line
with their past requests.
FY08 CAPITAL OUTLAY BUDGET
The Board of Education provided the Commissioners a list of their capital priorities and a
draft capital outlay planning budget spread over five (5) years. Chairman McCall noted
that the first sixteen (16) items on the list are “must-do’s”, followed by the list of their
priorities. She stated that their request includes a Facilities Master Plan for FY08. The
Board of Education requested $20,000 to complete the project.
Commissioner Guice said Categories I, II, and III reflect a substantial increase over last
year. He would like to discuss what the County has been able to accomplish over the last
years for the School System and how the County has been able to meet those challenges
and fund those capital needs.
Commissioner Phillips asked if the project they plan to complete with the lottery funds is
on the list. Chairman McCall responded saying that the project is not on the list. She
said that once an agreement is made between both Boards, then Board of Education feels
the appropriate project for the proceeds would be the Brevard High School stadium. The
Board of Education has also agreed on a future project. They plan to use the lottery funds
to match funds raised by a committee to build an art gallery.
Commissioner Guice stated that the County was using money set aside in a reserve
account to fund schools capital needs. At the end of the current fiscal year, the reserve
4/03/2007
6
fund will have a $0 balance. Mr. Rogers added that it appears that monies have not gone
into the reserve account since FY 2001-01.
The Manager responded saying the year that all the plants closed down in the County, the
Board of Commissioners decreased the tax rate to alleviate the burden that was placed
upon the citizens. He added that the Commissioners instructed Staff to just meet the
needs of the County, including repaying debts. The County lost $2 million in property
taxes alone with the closing of the plants, therefore the same amount was cut from the
County’s operating expenses. The Manager said these reasons are why no other monies
have been going into this account.
Chairman McCall asked what monies were being put into the reserve account and if those
funds were required for school capital. The Manager responded. He said the County
made the decision to set aside funds for the schools. When the tax rate was reduced, the
County did not have additional monies to put into the reserve account.
Chairman McCall asked what the total amount was on the bond referendum and if the
County received any interest from the bond monies. The Manager responded saying the
bond amount was $24.3 million and the County did not receive any interest from the
bonds. The bond money was spent and taxes were increased to cover the repayment of
the bonds. Extra monies from the tax increase were set aside in a reserve account for
school capital in the amount of $3.4 million.
Chairman McCall would like Mr. Barger and Dr. Lyda to review the information the
Commissioners have provided to them and have an opportunity to request additional
information from the County. She stated that she wants to better understand how the
County’s finances work. Chairman Chappell said the Manager and Finance Director
would be available to answer questions and that the budgets should be transparent.

Mr. Rogers asked if taxpayers voted for a $.10 cents tax increase. The Manager
responded saying the voters voted passed a $24.3 million bond, not a $.10 cents tax
increase. With the tax increase, the County could pay off the bonds faster and do some
additional things. He added that when the plants closed, the County funded the schools’
capital requests from the reserve funds. The County no longer has revenue sources that it
had in the past.

Chairman McCall said the Board of Education’s commitment is to take care of the school
system in a partnership with the County. She said it is not their intent to break the
County with this budget request this year or in the future but rather find a way to meet the
needs of the school system. She said they are committed to meeting the needs of the
schools. They want to better understand the County’s position. She thinks that both
Boards should be able to come to an agreement where the schools are funded and the
County is also taken care of.
Commissioner Phillips said at the last meeting he mentioned trying to create a funding
formula to help both boards with budget preparations. Capital budgets are not consistent
4/03/2007
7
from year to year. Chairman McCall said the Board of Education is willing to work with
the Commissioners to have a better process in place to help with planning for both
Boards.
Commissioner Guice said he hopes that the formula would not set a dollar amount but
would set principles and practices in place that would help reach an end result.
CENTRAL OFFICE FACILITY
Chairman McCall stated that the Board of Education included renovations to the central
office facility in their capital budget as a separate issue from the capital outlay budget and
the current expense budget. She said not much has been done to the facility other than
addressing immediate health and safety issues. Superintendents have been reluctant to
spend any money on the facility when it would have been better spent in the classroom or
the schools. Chairman McCall estimated that it would cost $2 million to build a new
facility. The Board of Education is at a point where they need to decide to renovate this
facility or relocate. She asked the County to give them some direction.
Mr. Whitmire added that not all of the offices are located at the Education Center and to
accommodate moving all Staff into a central location would require an addition to the
building. He also stated that there are some historical limitations to renovating the
building.
Mr. Cathey asked if there was any property available that could be built on. Chairman
McCall said there is property available on Fisher Road and would be suitable for building
on if that is the direction in which the Commissioners decide to go. Commissioner Guice
stated that if the cost to renovate is lower than building a new facility, then the County
should consider renovating. He said the County is facing a number of challenges and
must find other funding formulas to be able to meet some of those needs.

Chairman Chappell stated that before the Commissioners can instruct them on which
direction to take, the County needs to know exactly what their needs are. Commissioner
Guice added that the County needs to find out what the historical limitations are.
Chairman McCall said she would get some cost comparisons on what the cost would be
to renovate versus building a new facility. Commissioner Hogsed asked her to include
what the Board of Education would be missing in a central office facility if the County
decided to move in the direction of renovating the Morris Education Center.
BOARD COMMENTS
Mr. Rogers thanked the Board of Commissioners for their support.

Chairman McCall thanked the Commissioners for their willingness to conduct a joint
meeting. She thinks it is important to the County as a whole that both Boards are
conducting business and having discussions in public. She is confident that both Boards
will work together for the benefit of the County and the schools.
Commissioner Hogsed thanked the Board of Education for a productive meeting.
4/03/2007
8
Chairman Chappell thanked the Board of Education for having open and honest dialogue.
He stated that everyone needs to remember that members of both Boards are here at the
pleasure of the citizens of Transylvania County.
PUBLIC COMMENTS
A citizen addressed the Board. He said he just moved to Brevard and was astounded by
the professionalism of both Boards and was very impressed with Transylvania County’s
website. He also said he would like to discuss a matter with the Boards after the meeting,
an issue that he feels is illegal and could bring us into litigation.
ADJOURNMENT
Ms. Pogue moved to adjourn the Board of Education meeting, seconded by and Mr.
Rogers and unanimously carried.
Commissioner Phillips moved to adjourn the Board of Commissioners’ meeting,
seconded by Commissioner Bullock and unanimously carried.
______________________________
Jason R. Chappell, Chairman
Board of County Commissioners
ATTEST:
______________________________
Trisha D. McLeod
Clerk to the Board
4/03/2007